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Editor's note, 2:03 p.m.: This post has been updated with responses from Beth Miller, spokeswoman for the Small Business Action Committee.

Republican activist Charles Munger Jr. has given more than $10 million to an independent committee supporting Proposition 32's campaign finance provisions and opposing Proposition 30's tax increase, according to a new state filing.

The committee has bought millions of dollars in advertising to support Proposition 32 and given some of the cash to a different campaign fighting Gov. Jerry Brown's tax measure.

The Small Business Action Committee received two donations from Munger, according to the Secretary of State's report issued this morning: $5.9 million near the end of September and $4.1 million a week earlier. Since January, the business action committee has taken in nearly $12 million.

The committee used the money to purchase about $4.8 million in radio and television ads supporting Proposition 32. It also gave $700,000 to a committee fighting Proposition 30.

The development means Brown is now fighting two members of the Munger family.

Charles Munger's sister, Molly Munger, has poured nearly $30 million of her own money into a competing tax proposal on the November ballot, Proposition 38.

The flow of the money and the credit at the end of a televised No on 32 ad that launched Tuesday night underscore the political tie between the campaign finance measure and Brown's tax initiative : "Paid for by Small Business Action Committee PAC, No on 30/Yes on 32, Citizens for Reforming Sacramento."

Beth Miller, Sacramento-based communications consultant paid by the Small Business Action Committee, said that like many political committees, including several opposing Proposition 32, the Small Business PAC is set up to swing money to either campaign.

Miller declined to talk about how much of Munger's money would go to support Proposition 32 or to battle Proposition 30.

"We don't discuss strategy," Miller said this afternoon.

Charles Munger's contributions more than double the money previously collected by the pro-Proposition 32 campaign itself and independent campaigns supporting the measure, about $18 million to date.

Meanwhile, the union-backed No on 32 campaign claims ads now airing statewide supporting the measure violate state and federal campaign disclosure rules and should be pulled immediately.

The labor-backed campaign against the measure this morning sent a letter to stations around the state, claiming that the disclosure statement in ads that started airing Tuesday night violate federal and state disclosure and disclaimer rules. (Click here to read the No on 32 campaign's letter to broadcasters.)

Miller dismissed the charges and said that the small business committee has filed all the necessary paperwork in compliance with the law.

"It's much ado about nothing," Miller said.

Labor organizations have donated about $43 million to efforts to defeat Proposition 32, which would ban unions and corporations from using payroll-deducted money for political purposes and deny either group from giving money directly to candidates or their campaign committees.

Both could still donate unlimited sums to independent expenditure campaigns, which are considered a constitutionally-protected form of free speech. But unions wouldn't have as much money to spend, since they raise their funds through payroll-deducted member dues. Corporations get their money from individual donations and their company treasuries.


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